America Commerce Consultant (USTR) has proposed to impose retaliatory tariffs on Indian shrimps, basmati rice, gold and silver gadgets, bamboo merchandise, wooden furnishings, cigarette paper, cultured pearls, treasured or semi-precious stones, and token-operated video games for arcade amongst others in response to the two% equalisation levy, or the socalled Google tax, that got here into impact on April 1, 2020.
The USTR has recognized 119 firms which can be prone to be liable beneath India’s digital service tax (DST) on revenues earned from transactions with Indian customers, out of which 86, or 72%, are American firms.
“Authorities of India will look at the proposed motion with the stakeholders involved and take appropriate measures, conserving in thoughts the commerce and business curiosity of the nation and total curiosity of its individuals,” an official mentioned.
Specialists mentioned India can elevate a dispute on the World Commerce Group (WTO) if the US imposes any such tariffs, and draw up its personal record of retaliatory actions reminiscent of banning American audio-video streaming companies, social media platforms and bank cards.
“India mustn’t withdraw the levy or present any consideration as a result of our digital future is at stake,” a Delhi-based knowledgeable on WTO points informed ET. “If the US imposes any retaliatory tariffs, we must always instantly file a dispute on the WTO.” India should additionally draw up its personal record of retaliatory actions particularly on companies the place it has flexibilities, the particular person mentioned.